App-based home services companies are seeing increased investor interest, with funding towards the sector having gone up nearly 3X between 2023 and 2025.
According to data sourced from Tracxn, online home services companies collectively raised about $83 million in funding in 2025, as against $64.7 million in 2024 and $30.5 million in 2023.
The major chunk of proceeds went to the, Snabbit and Pronto, who along with Urban Company, make up the online home services market share.
Snabbit sought capital three times in 2025 alone, raising about $55 million. The company is reportedly expected to raise another $50–60 million sometime this year. Pronto, a relatively new entrant, raised about $40 million in three rounds, which included a $25 million round earlier this month.
Meanwhile, Urban Company, which is the largest player in the segment, debuted on the stock exchange in September of last year, when it raised ₹1,900 crore. The company posted revenues of ₹383 crore revenue and a loss after tax of ₹21 crore Q3 FY26.
Speaking to , analysts and investors say that a shift in consumer behaviour from occasional repair works to frequent, on-demand, instant help, along with increased demand in urban markets are early signs of profitability and driving investor interest.
Rahul Taneja, Partner at Lightspeed says that the home services model has opened up beyond specialised, low frequency tasks like plumbing or carpentry to high frequency tasks such as generalized home cleaning. He believes that this shift is akin to a new brand category and hence has peaked investor interest.
Taneja added that current proceeds are helping incumbent players to “densify demand” across key geographies.
“This is a hyperlocal business, and scaling geographies is lower in importance than densifying demand. Capital is enabling demand density, which is leading to scale and early signs of profitability are showing up,” he added.
In a recent earnings call Abhiraj S Bhal, Co-founder and CEO of Urban Company echoed this. “We believe insta-help is a micro-market and dense business. In fact, the micro-market density and micro-market sizes are even smaller than our core business,” he said. He added that Urban Company will look at offering attractive earnings along with other benefits like insurance to attract and retain the workforce in an increasingly competitive landscape.
The small but rapidly expanding market share of online services in the overall home services sector is also signalling a large headroom for growth.
Rohan Agarwal, Partner at Redseer Strategy Consultants mentions that despite recent growth, the significant chunk of home services continues to be unorganised and offline.
“As of FY2025, online penetration stands at less than 1% of net transaction value but the segment is expanding at a projected CAGR of 18-22 per cent through FY2030, as consumers increasingly seek convenience, reliability, and accountability that offline alternatives struggle to provide,” he said.
However, the sector is not without risks.
Agarwal suggests that the economics of high-frequency, low-value along with the ability of platforms to maintain a stable hyperlocal supply of experts, especially during high-demand hours could be critical factors.
Taneja suggests that the business is anchored on recruiting, training and working with a very large supply base and it is super important to help build systems which create a safety net for them.
“At the same time, customer safety is paramount too. These factors will be the critical risk to solve for, and the foundational bedrock of creating a winning platform,” he added.